Zhengte IPO: Revenue highly depends on exports of export.

Zhengte shares was declared listing in 2017, or the performance was cut, and the company retracted the application. The IPO was impacted again this time. During the reporting period, the performance increased steadily, but it has not restored the previous profitability. In addition, the company's revenue is highly dependent on export, and there is a certain risk under the situation of global trade protectionism.

On December 24, 2021, Zhejiang Zhengte Co., Ltd. (hereinafter referred to as: Zhengte Co., Ltd.) submitted the application on the motherboard of the Shenzhen Stock Exchange; on May 19, 2022, Zhengte shares will pass.

The prospectus shows that the total number of shares to be publicly issued by Zhengte's shares does not exceed 27.5 million shares, and it is not less than 25%of the company's total shares after the issuance. It is expected to raise 447 million yuan, of which 251 million yuan is used for annual outdoor leisure supplies projects, 77 million yuan for R & D testing and experience center construction projects, 48 ​​million yuan for domestic marketing experience center construction projects, and 70 million billion yuan Yuan is used to supplement mobile funds and repay bank loans.

Reading the prospectus and found that Zhengte shares was reported to be listed in 2017, or the performance was cut, and the company retracted the application. The IPO was impacted again this time. During the reporting period, the performance increased steadily, but it has not restored the previous profitability. In addition, the company's revenue is highly dependent on export, and there is a certain risk under the situation of global trade protectionism. Regarding the above situation, I found that the network sent an interview letter to the public mailbox to send an interview letter to the request to be explained. As of the press press, Zhengte shares did not give a reasonable explanation.

Previous retracement application attracted attention

Public information shows that Zhengte shares is a high -tech enterprise that integrates outdoor leisure furniture and supplies research and development, production, and sales business. The company has established a relatively complete outdoor leisure furniture and supplies business system. It now has two major product series of shading products and outdoor leisure furniture.

In fact, this is not the first time that Zheng Special shares have impacted the IPO. As early as October 2017, Zhengte shares submitted a prospectus to the Securities and Futures Commission to apply for the Shanghai Main Board to go public, but it was not approved. This time, the main board of Shenzhen City was changed from Guangfa Securities (000776) to Guotai Junan (601211).

It is reported that in early 2018, due to regulatory regulations, the recent profit requirements for the IPO enterprise delineated the "internal control red line". In the last period of the recent period, the non -net profit of about 50 million companies appeared in the tide of discharging the IPO declaration in batches. In the past few months, the listing materials of hundreds of companies were withdrawn. Among them, it includes Zhengte shares. Analysts pointed out that the reason for the first IPO of Zhengte shares was the cause of its performance.

From 2014 to 2016, Zhengte's revenue achieved revenue of 621 million yuan, 602 million yuan, and 686 million yuan, respectively, with a year-on-year growth rate of 939%,-3.07%, and 14.07%. Yuan, 067 million yuan and 85 million yuan, the year-on-year growth rate of -12.41%, 265.45%, and 27.31%, respectively. Subsequently, the company's performance declined, and the net profit of the mother of Zhengte in 2018 was only 45 million yuan.

Source: Wind (Zhengte shares)

The performance plummeted, and the unsuccessful listing of Zhengte shares have been silent for three years, and in December 2021, they once again impacted the IPO with the fundamental fundamentals.

From 2018 to 2020 and in the first half of 2021, Zhengte's revenue achieved revenue of 704 million yuan, 675 million yuan, 91 billion yuan, and 673 million yuan, of which in 2019 and 2020, the year-on-year growth rates were -4.13%and in 2019 and 2020, respectively. 34.83%; net profit attributable at the same time was 48 million yuan, 42 million yuan, 80 million yuan, and 56 million yuan, of which the year-on-year growth rates in 2019 and 2020 were -12.97%and 92.87%, respectively.

Source: Wind (Zhengte shares)

At first glance, from 2018 to 2021, Zhengte shares achieved steady performance growth. If compared to previous data, it will be found that the company's profitability has not been restored. In 2016, Zhengte's net profit was 84 million yuan in net profit, and by 2020, it was only 80 million yuan.

Earlier withdrawal declaration caused the attention of the Securities and Futures Commission. The feedback requested the reason why the previous withdrawal declaration was not met, whether the impact of the relevant matters was substantially eliminated, and whether the listing and listing constituted substantially Sexual obstacles and information disclosure differences in this application and previous declarations, reasons for differences, and so on.

Revenue dependence on export depository risk

According to the prospectus, outdoor leisure furniture and supplies of outdoor leisure furniture and supplies of outdoor furniture furniture and supplies are mainly sold to North America and Europe. Customers include large chain supermarkets and brand vendors. In recent years, the export revenue of Zhengte shares has shown a stable and rising trend.

From 2018 to 2020 and in the first half of 2021, the export revenue of Zhengte shares was 584 million yuan, 603 million yuan, 828 million yuan, and 587 million yuan, respectively, accounting for 93.24%, 95.66%, and 95.66%, respectively. 97.01%and 92.59%. Among them, the sales revenue in North America was 422 million yuan, 418 million yuan, 619 million yuan, and 369 million yuan, respectively, accounting for 67.30%, 66.33%, 72.59%, and 58.25%. The yuan, 132 million yuan, 150 million yuan and 182 million yuan, accounting for 20.00%, 20.92%, 17.53%, and 28.77%, respectively. Source: prospectus (Zhengte shares)

Industry insiders pointed out that the main revenue of Zhengte shares comes from export revenue, but if it will be affected by major adverse changes in the external economic environment such as the economic crisis in the future, the market demand declines, or unilateral or multilateral trade frictions occur with the company's main export countries. The situation will adversely affect the company's overseas sales performance.

The high proportion of exports has led to the operating performance of Zhengte's shares more sensitive to the fluctuation of the US dollar exchange rate. In 2018 and 2019, the exchange rate of the US dollar against the RMB showed an upward trend. The company realized exchange income of 16.7621 million yuan and 5.8108 million yuan, respectively; from January to June 2021, due to fluctuations in the exchange rate of the RMB against the US dollar, the company's exchange loss was 1582.11. 10,000 yuan and 39.235 million yuan.

Source: prospectus (Zhengte shares)

In recent years, global trade protectionism has risen, especially the tendency of US trade protectionism policies has gradually increased. Since 2018, the United States has imposed tariffs on imported goods in China. Zhengte shares stated that after the company's products were imposed, some customers should bear some losses by the company's price by lowering the price of the product, and the two parties jointly undertake the adverse effects of rising tariff rates.

In addition, Overseas Sales of Zhengte products also include Europe, Canada, Australia and other countries or regions. Since December 1, 2021, some countries or regions have canceled their "inclusive" treatment in my country.

For Zhengte shares that highly rely on export revenue, if under the influence of politics, diplomacy, employment and other factors, the company's product export countries or regions related trade policies have further changed or trade frictions with my country will give the company market. Sales bring certain risks, thereby major adverse changes in operating performance.

(Reporter Luo Xuefeng Financial Researcher Chen Kangli)

- END -